Open Access. Powered by Scholars. Published by Universities.®

Business Law, Public Responsibility, and Ethics Commons

Open Access. Powered by Scholars. Published by Universities.®

Corporate Finance

Institution
Keyword
Publication Year
Publication
Publication Type
File Type

Articles 331 - 360 of 389

Full-Text Articles in Business Law, Public Responsibility, and Ethics

Preventing Fraudulent Financial Reporting, Mark Beasley, Joseph Carcello, Dana Hermanson Nov 2000

Preventing Fraudulent Financial Reporting, Mark Beasley, Joseph Carcello, Dana Hermanson

Joseph V. Carcello

Detecting financial fraud and communicating it to management can be difficult for even the best auditors. A recent study by the Committee of Sponsoring Organizations (COSO) highlighted six key areas in a "fraud profile" that auditors can use to reduce exposure to fraudulent financial reporting.


Fraudulent Financial Reporting: Consideration Of Industry Traits And Corporate Governance Mechanisms, Mark Beasley, Joseph Carcello, Dana Hermanson, Paul Lapides Nov 2000

Fraudulent Financial Reporting: Consideration Of Industry Traits And Corporate Governance Mechanisms, Mark Beasley, Joseph Carcello, Dana Hermanson, Paul Lapides

Joseph V. Carcello

This paper provides insight into financial statement fraud instances investigated during the late 1980s through the 1990s within three volatile industries—technology, health care, and financial services—and highlights important corporate governance differences between fraud companies and no-fraud benchmarks on an industry-by-industry basis. The fraud techniques used vary substantially across industries, with revenue frauds most common in technology companies and asset frauds and misappropriations most common in financial-services firms.For each of these three industries, the sample fraud companies have very weak governance mechanisms relative to no-fraud industry benchmarks. Consistent with prior research, the fraud companies in the technology and ...


Audit Committee Composition And Auditor Reporting, Joseph Carcello, Terry Neal Sep 2000

Audit Committee Composition And Auditor Reporting, Joseph Carcello, Terry Neal

Joseph V. Carcello

This study examines the relation between the composition of financially distressed firms' audit committees and the likelihood of receiving going-concern reports. For firms experiencing financial distress during 1994, we find that the greater the percentage of affiliated directors on the audit committee, the lower the probability the auditor will issue a going-concern report. These results support regulators' concern about financial-reporting quality and the recent calls for more independent audit committees.


Should You Offer A Job To Your External Auditor?, Mark Beasley, Joseph Carcello, Dana Hermanson Apr 2000

Should You Offer A Job To Your External Auditor?, Mark Beasley, Joseph Carcello, Dana Hermanson

Joseph V. Carcello

Companies searching for senior executive talent often lure partners from the firms that perform their annual audits. But this can be risky, warn the authors. Is it worth it? How can you manage those risks?


Financial Information Resources For Special Librarians, Di Su Apr 2000

Financial Information Resources For Special Librarians, Di Su

Publications and Research

Speed has always been a competitive factor and corporate asset in business world. The growth of the Internet has created an equal opportunity for information service professionals in both big and small companies to improve their efficiency. The prominent advantages of Web source are currency, accessibility, and thus, the speed. You are provided with instant updates on issues like rules, official statements, interpretations, statistics, etc., and these documents can be accessed twenty-four hours a day, seven days a week. There are so many valuable Web sites on the Internet that it is impossible to include them all in this article ...


Going-Concern Opinions: The Effects Of Partner Compensation Plans And Client Size, Joseph Carcello, Dana Hermanson, H. Huss Feb 2000

Going-Concern Opinions: The Effects Of Partner Compensation Plans And Client Size, Joseph Carcello, Dana Hermanson, H. Huss

Joseph V. Carcello

Partner compensation plans in large accounting firms tend to emphasize either local office profits or worldwide firm profits (“small-pool” or “large-pool” firms, respectively) (Trompeter 1994). Some have expressed concern over possible impairment of auditor independence when a small-pool compensation plan is used, and Trompeter (1994) found in an experimental setting that partners in small-pool firms were less likely to require income-decreasing adjustments.We examine, in an archival setting, the association of partner compensation plans and client size with auditors' propensity to issue going-concern audit opinions to stressed clients. We find no evidence that auditors' going-concern reporting decisions were directly affected ...


A Decision Aid For Assessing The Likelihood Of Fraudulent Financial Reporting, T. Bell, Joseph Carcello Feb 2000

A Decision Aid For Assessing The Likelihood Of Fraudulent Financial Reporting, T. Bell, Joseph Carcello

Joseph V. Carcello

The auditor's responsibility for detecting fraudulent financial reporting is of continuing importance to both the profession and society. The Auditing Standards Board has recently issued SAS No. 82, Consideration of Fraud in a Financial Statement Audit, which makes the auditor's responsibility for the detection of material fraud more explicit without increasing the level of responsibility.Using a sample of 77 fraud engagements and 305 nonfraud engagements, we develop and test a logistic regression model that estimates the likelihood of fraudulent financial reporting for an audit client, conditioned on the presence or absence of several fraud-risk factors. The significant ...


Lockups And Delaware Venue In Corporate Law And Bankruptcy, David A. Skeel Jr. Jan 2000

Lockups And Delaware Venue In Corporate Law And Bankruptcy, David A. Skeel Jr.

Faculty Scholarship at Penn Law

No abstract provided.


Fraudulent Financial Reporting: Implications For Corporate Directors, M. Beasley, Joseph Carcello, D. Hermanson Aug 1999

Fraudulent Financial Reporting: Implications For Corporate Directors, M. Beasley, Joseph Carcello, D. Hermanson

Joseph V. Carcello

No abstract provided.


Audit Committees: The Rising Expectations, M. Beasley, Joseph Carcello, D. Hermanson Jun 1999

Audit Committees: The Rising Expectations, M. Beasley, Joseph Carcello, D. Hermanson

Joseph V. Carcello

No abstract provided.


Financial Fraud And Audit Committee Reform, M. Beasley, Joseph Carcello, D. Hermanson Jun 1999

Financial Fraud And Audit Committee Reform, M. Beasley, Joseph Carcello, D. Hermanson

Joseph V. Carcello

No abstract provided.


Just Say 'No', Mark S. Beasley, Joseph V. Carcello, Dana R. Hermanson May 1999

Just Say 'No', Mark S. Beasley, Joseph V. Carcello, Dana R. Hermanson

Faculty Publications

The article discusses the prevention of financial fraud within corporations and businesses in the United States. The types of individuals named in the U.S. Securities and Exchange Commission (SEC) files are examined. Different fraud techniques are looked at, including sham sales, the recording of conditional sales, and unauthorized shipments. The author discusses the status of firms after fraud disclosure and the implications it has for finance professionals.


Coso's Fraud Study: What It Means For Cpas, M. Beasley, Joseph Carcello, D. Hermanson Apr 1999

Coso's Fraud Study: What It Means For Cpas, M. Beasley, Joseph Carcello, D. Hermanson

Joseph V. Carcello

No abstract provided.


Fraudulent Financial Reporting: Governance Implications For Internal Auditors, M. Beasley, Joseph Carcello, D. Hermanson Apr 1999

Fraudulent Financial Reporting: Governance Implications For Internal Auditors, M. Beasley, Joseph Carcello, D. Hermanson

Joseph V. Carcello

No abstract provided.


Fraudulent Financial Reporting 1987-1997: Trends In U.S. Public Companies, M. Beasley, Joseph Carcello, D. Hermanson Apr 1999

Fraudulent Financial Reporting 1987-1997: Trends In U.S. Public Companies, M. Beasley, Joseph Carcello, D. Hermanson

Joseph V. Carcello

No abstract provided.


Just Say 'No', M. Beasley, Joseph Carcello, D. Hermanson Apr 1999

Just Say 'No', M. Beasley, Joseph Carcello, D. Hermanson

Joseph V. Carcello

No abstract provided.


Fraudulent Financial Reporting: 1987-1997 An Analysis Of U.S. Public Companies, Mark Beasley, Joseph Carcello, Dana Hermanson Dec 1998

Fraudulent Financial Reporting: 1987-1997 An Analysis Of U.S. Public Companies, Mark Beasley, Joseph Carcello, Dana Hermanson

Joseph V. Carcello

No abstract provided.


Client Satisfaction And Big 6 Audit Fees, Bruce Behn, Joseph Carcello, Dana Hermanson, Roger Hermanson Dec 1998

Client Satisfaction And Big 6 Audit Fees, Bruce Behn, Joseph Carcello, Dana Hermanson, Roger Hermanson

Joseph V. Carcello

This study examines whether client satisfaction can help explain cross-sectional variation in Big 6 audit fees paid by Fortune 1000 clients. After controlling for other factors related to audit fees (including audit quality attributes), client satisfaction with the audit team is positively associated with fees. It appears that a dimension of client satisfaction unrelated to audit quality attributes is the factor associated with an audit fee premium. This dimension of satisfaction may reflect other aspects of service quality not documented in the literature, or it may simply enable an auditor to earn economic rents through enhanced bargaining power. Client satisfaction ...


Political Institutions And Electric Utility Investment: A Cross-Nation Analysis, Mario E. Bergara, Witold J. Henisz, Pablo T. Spiller Jan 1998

Political Institutions And Electric Utility Investment: A Cross-Nation Analysis, Mario E. Bergara, Witold J. Henisz, Pablo T. Spiller

Management Papers

While cross-border investment flows are surging to levels not witnessed since before the Great Depression, the evaluation of political risk inherent in these projects has changed little since the 1960s. Since 1983, foreign direct investment inflows to developing countries have increased five-fold. From 1989 to 1992, the stock of American affiliates infrastructure assets grew by 153% leading to the share of total assets invested in infrastructure doubling from 1.6% to 3.0%. While this is but a fraction of the peak of 22% reached in 1940, recent research by the World Bank suggests that more than $2.0 trillion ...


Can Internet Offerings Bridge The Small Business Capital Barrier?, Jill E. Fisch Jan 1998

Can Internet Offerings Bridge The Small Business Capital Barrier?, Jill E. Fisch

Faculty Scholarship at Penn Law

No abstract provided.


Factors Associated With Audit Client Relationships “At Risk”, Joseph Carcello, Dana Hermanson, Roger Hermanson Dec 1997

Factors Associated With Audit Client Relationships “At Risk”, Joseph Carcello, Dana Hermanson, Roger Hermanson

Joseph V. Carcello

On occasion, rather than having a successful relationship, an audit client relationship is “at risk”—the client is giving consideration to changing auditors in the next few years. Can client relationships “at risk” be predicted or at least identified early enough to minimize the damage? This exploratory study provides insight into this important question. Based on a large sample of Fortune 1000 companies, the results indicate that client satisfaction, corporate controller work experience, and audit firm executive involvement in the engagement all are important determinants of the success of the relationship.


The Determinants Of Audit Client Satisfaction Among Clients Of Big 6 Firms, B. Behn, Joseph Carcello, D. Hermanson, R. Hermanson Feb 1997

The Determinants Of Audit Client Satisfaction Among Clients Of Big 6 Firms, B. Behn, Joseph Carcello, D. Hermanson, R. Hermanson

Joseph V. Carcello

No abstract provided.


The Effect Of Sas No. 59: How Treatment Of The Transition Period Influences Results, Joseph Carcello, D. Hermanson, H. Huss Dec 1996

The Effect Of Sas No. 59: How Treatment Of The Transition Period Influences Results, Joseph Carcello, D. Hermanson, H. Huss

Joseph V. Carcello

No abstract provided.


Enhancing Internal Audit Department Credibility: Internal Audit Directors' Perceptions Of Serving Two Customers, Joseph Carcello, D. Hermanson Dec 1996

Enhancing Internal Audit Department Credibility: Internal Audit Directors' Perceptions Of Serving Two Customers, Joseph Carcello, D. Hermanson

Joseph V. Carcello

No abstract provided.


Inappropriate Audit Partner Behavior: Views Of Partners And Senior Managers, Joseph Carcello Dec 1995

Inappropriate Audit Partner Behavior: Views Of Partners And Senior Managers, Joseph Carcello

Joseph V. Carcello

No abstract provided.


An Analysis Of Multinational “Audit Failures”, Heather Hermanson, Dana Hermanson, Joseph Carcello Dec 1995

An Analysis Of Multinational “Audit Failures”, Heather Hermanson, Dana Hermanson, Joseph Carcello

Joseph V. Carcello

The shift toward multinational corporations has exposed the auditor to many risks not found on domestic audits, including foreign currency issues, international political risks, international economic risks, greater information asymmetry, and greater complexity. As the client base of the large accounting firms becomes more multinational, it is important to understand whether multinational risk factors are associated with “audit failures.” We identified only eight multinational audit failures (multinational client bankruptcy shortly after an unmodified audit opinion) from the period 1988–1992. An examination of these eight failures provided very little evidence that multinational risk factors played any role in the failures.


Better Environment, Better Staff, R. Hermanson, Joseph Carcello, D. Hermanson, B. Milano, G. Polansky, D. Williams Mar 1995

Better Environment, Better Staff, R. Hermanson, Joseph Carcello, D. Hermanson, B. Milano, G. Polansky, D. Williams

Joseph V. Carcello

No abstract provided.


Decision Framing And Efficiency/Effectiveness Trade-Offs In Auditors' Planning Materiality Judgments, Sridhar Ramamoorti Jan 1995

Decision Framing And Efficiency/Effectiveness Trade-Offs In Auditors' Planning Materiality Judgments, Sridhar Ramamoorti

Accounting Faculty Publications

The exercise of judgment is not only essential to the practice of disciplines such as law, medicine and accounting, but is also what distinguishes these domains as professions (Boritz, Gaber & Lemon, 1987, cited in Gibbins & Mason, 1988). Recent advances in cognitive psychology research have given an impetus to research focusing on the nature of professional judgment, expert-novice cognition, heuristics and biases in decision making as well as decision strategies, the acquisition of knowledge and the effects of experience, and the development of expert/decision support systems (Ashton, 1982a; Smith & Kida, 1991; Chi, Glaser & Farr, 1988). The central importance of experience and the interaction of judgment with professional expertise and standards is evident from works devoted to explicating "professional judgment" in medicine (Dowie & Elstein, 1988) and accounting (Gibbins & Mason, 1988). Internally, exponential growth in knowledge and burgeoning technology have made it extremely difficult for "experts" to keep abreast of all new developments; externally, rising public expectations and lawsuits have significantly altered the institutional and legal contexts within which professional-client relations occur (Dowie & Elstein, 1988). In an environment calling for greater accountability for professional judgments, the basis for the exercise of professional judgment is increasingly coming under scrutiny: Experts are being compelled 1 2 to disclose how they reached their conclusions, what reasoning they employed, what evidence they relied upon (Simon, 1977).

It is imperative that professional judgment and decision making be actively studied, for we cannot proceed to improve a process unless we first understand it (Hogarth, 1991; Ashton, 1982b). With the appropriate strategy, methods, and techniques, theories from cognitive science can be usefully integrated with the applied theory of any practicing profession to the benefit of both disciplines (Skipper, Diers, & Leonard, 1967; Smith & Kida, 1991; Ashton, Kleinmuntz, Sullivan & Tomassini, 1988). Given the preponderance of professional judgment across domains ...


The Relation Between Audit Structure And Public Responsibility: Audit Firms' Propensity To Qualify Bankruptcy-Related Opinions, Joseph Carcello, D. Hermanson, H. Huss Dec 1994

The Relation Between Audit Structure And Public Responsibility: Audit Firms' Propensity To Qualify Bankruptcy-Related Opinions, Joseph Carcello, D. Hermanson, H. Huss

Joseph V. Carcello

No abstract provided.


Professional Certifications For Internal Auditors, Joseph Carcello Dec 1994

Professional Certifications For Internal Auditors, Joseph Carcello

Joseph V. Carcello

No abstract provided.